Slide 1: Tropicana Site Visit Presentation
ASX RELEASE 4 AUGUST 2017 For personal use only TROPICANA SITE VISIT PRESENTATION Attached is a presentation to be given on 6 August 2017, as part of an investor / analyst site visit to the Tropicana Gold Mine. Further additional information can be found in ASX Release – Tropicana Gold Mine Update (
Slide 2: Investor / Analyst Visit Tropicana Gold Mine
For personal use only INVESTOR / ANALYST VISIT TROPICANA GOLD MINE 6 AUGUST 2017
Slide 3: AngloGold Ashanti Ltd Disclaimer
ANGLOGOLD ASHANTI LTD DISCLAIMER For personal use only Certain statements contained in this document, other than statements of historical fact, including, without limitation, those concerning the economic outlook for the gold mining industry, expectations regarding gold prices, production, total cas
Slide 4: Cautionary Statements & Disclaimer
Cautionary Statements & Disclaimer Independence Group NL For personal use only • This presentation has been prepared by Independence Group NL (“IGO”) (ABN 46 092 786 304). It should not be considered as an offer or invitation to subscribe for or purchase any securities in IGO or as an inducement to
Slide 5: Current Operations 2017-2019; The Future 2020 onwards; Upside
For personal use only Current Operations – 2017 - 2019 The Future - 2020 onwards Upside 4
Slide 6: Historical Performance
HISTORICAL PERFORMANCE Tropicana has a track record of delivery to promise… For personal use only Exceeded Feasibility Study Parameters • Gold Production • Costs • Mining Rate • Mill Throughput • Resource & Reserve Growth • Mine Life …and a culture of continuous improvement 5
Slide 7: Current Operations – 2017-2019: Accelerated Mine Plan
CURRENT OPERATIONS – 2017 - 2019 For personal use only Accelerated Mine Plan • Face shovel implemented Nov 2016 • Increase in volume moved • Reduction in unit cost • Brought forward over 200Koz into 2017 - 2019 6
Slide 8: Accelerated Mine Plan - Mining Cost
ACCELERATED MINE PLAN - MINING COST Material movement has increased significantly since 2015 with the accelerated mining strategy… Mining cost (A$/wmt) wmt A$/wmt For personal use only 6 110 - 37% 100 90 5 80 70 4 Million tonnes 60 A$/wmt 50 Conventional mining – Long 3 no backfilling Island 40 Targ
Slide 9: Mill Throughput – Our Improvement Journey
MILL THROUGHPUT – OUR IMPROVEMENT JOURNEY We have come a long way in optimising the potential of the process plant… For personal use only Optimising capacity Operational Excellence – Plant optimisation Plant Performance + 38% • Nameplate 5.5Mtpa 8.5 on fresh rock 8.0 7.6 – 7.7 7.5 7.5 0.1 – 0.15 • E
Slide 10: Mill Throughput – Our Improvement Journey
MILL THROUGHPUT – OUR IMPROVEMENT JOURNEY The 2016 plant optimisation project was highly successful… For personal use only • Conveyors and HPGR – now capable of exceeding mill capacity • De-risked circuit through emergency fines stockpile • Leaching and downstream circuit now capable of higher throu
Slide 11: Mill Runtime – Reliability Improvements
MILL RUNTIME – RELIABILITY IMPROVEMENTS Improvements in planned and unplanned maintenance are evident in plant availability improvement … For personal use only Mill Runtime (%) 6 weeks Shutdown interval 13 weeks 102 • Reliability Improvement - increased runtime 100 99.7 99.8 from 89.9% (2014) to 95.
Slide 12: Reducing Mill Downtime
REDUCING MILL DOWNTIME The addition of a fines pulping system to the processing circuit … For personal use only Feed Hopper and Feeder Pumping Unit Slurry Feed into Mill Discharge Hopper Emergency Fines Stockpile …will increase annual mill run time by ~1.5% 11
Slide 13: Continuous Improvement Culture
CONTINUOUS IMPROVEMENT CULTURE For personal use only Mine Manager Project Manager Commercial & Mining Integrated Planning Projects Alliance Administration Geotechnical Drill & Blast Load & Haul Commercial Manager Improvement Superintendent Superintendent Coordinator Superintendent Superintendent Sup
Slide 14: Mine Reporting
MINE REPORTING Linking data analytics in a systemic and automated manner… For personal use only Continuous Improvement Culture A culture of “Know your Numbers”, coupled with standardised reporting (One Source of the Truth) to enable efficient data analysis and the identification of the top 3 improve
Slide 15: Real Time Reports
REAL TIME REPORTS Real time data analytics… For personal use only Short Interval Control Real time reporting is now in the hands of Supervisors in the field through Power BI reports on smart devices. …enables decisions to be made at the right time 14
Slide 16: Mining Efficiencies
MINING EFFICIENCIES Operational Excellence has delivered improved mining efficiencies… For personal use only LOADING PRODUCTIVITY IMPROVEMENTS A$0.024/t PRIORITY ROAD RULES A$0.030/t A$7.5m HAUL FLEET CONFIGURATION IMPROVEMENTS VALUE ADDED A$0.047/t in H1 2017 DRILL & BLAST PATTERN OPTIMISATION A$0.
Slide 17: Project Pipeline - Maintenance
PROJECT PIPELINE - MAINTENANCE Further work to improve plant performance… For personal use only … by reducing costs and improving plant runtime 16
Slide 18: Improvement Pipeline - Processing
IMPROVEMENT PIPELINE - PROCESSING Every project has a project plan and schedule… For personal use only …and an accountable project owner 17
Slide 19: The Future - 2020 onwards
For personal use only Current Operations – 2017 - 2019 The Future - 2020 onwards Upside 18
Slide 20: Resource Drilling Completed
RESOURCE DRILLING COMPLETED 12 For personal use only 11 10 • No significant changes to Tropicana Resource TROPICANA 9 8 • Orebody not continuous 7 • Evaluated cutback of Tropicana pit – low value 6 5 4 Starter pit HAVANA 500m HAVANA South 19
Slide 21: Optimising Material Movement
OPTIMISING MATERIAL MOVEMENT 12 STRIP MINED WASTE HAULED IN PIT For personal use only 11 BOSTON 10 SHAKER 1 Strip 1 TROPICANA 9 8 TROPICANA 7 6 STRIP MINED WASTE 5 HAULED IN PIT 4 HAVANA Strip 1 Strip 3 Starter pit HAVANA South Strip 4 Trade off - Strip 5 Value of gold vs HAVANA value of void as HAV
Slide 22: Optimising Material Movement – Backfill
OPTIMISING MATERIAL MOVEMENT For personal use only 1. Backfill STRIP MINED WASTE HAULED IN PIT BOSTON SHAKER 1 Strip 1 TROPICANA STRIP MINED WASTE HAULED IN PIT Strip 1 HAVANA 21
Slide 23: Optimising Material Movement – Slot Creation
OPTIMISING MATERIAL MOVEMENT For personal use only 1. Backfill STRIP MINED WASTE HAULED IN PIT 2. Slot creation BOSTON SHAKER 1 Strip 1 TROPICANA STRIP MINED WASTE HAULED IN PIT Strip 1 HAVANA 22
Slide 24: Optimising Material Movement – Short Tip Options
OPTIMISING MATERIAL MOVEMENT For personal use only 1. Backfill STRIP MINED WASTE HAULED IN PIT 2. Slot creation BOSTON 3. Short tip options SHAKER 1 Strip 1 TROPICANA STRIP MINED WASTE HAULED IN PIT Strip 1 HAVANA 23
Slide 25: Optionality in the Plan
OPTIONALITY IN THE PLAN Q4 2017 Q4 2019 Q4 2022 Mining stage 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 For personal use only Current LOM plan BOSTON SHAKER 1 Strip 1 Havana South Boston Shaker TROPICANA Havana stages 1-3 Havana stages 4-5 Four locations and eight stages HAVANA Strip 1 T
Slide 26: Upside
For personal use only Current Operations – 2017 - 2019 The Future - 2020 onwards Upside 25
Slide 27: Asset Potential (2020-2024)
ASSET POTENTIAL (2020-2024) Operational Excellence has delivered significant short term value… For personal use only Target underground reserves at +3.0 g/t Target 8Mtpa plant throughput at ~92% to displace stockpile mill feed after 2021 recovery by 2019 at a runtime of 97% RESERVE EXPLORATION MININ
Slide 28: Additional Ball Mill
ADDITIONAL BALL MILL The addition of a second ball mill has the potential to increase throughput to ~8 mtpa… For personal use only Sensitivity analysis (% change in NPV) Throughput • The project NPV is highly sensitive to additional mill volumes Recovery • The design aims to grind finer to improve t
Slide 29: Mill Throughput – Our Improvement Journey
MILL THROUGHPUT – OUR IMPROVEMENT JOURNEY We have come a long way in optimising the potential of the process plant… For personal use only Optimising capacity Operational Excellence – Operational Excellence – Plant optimisation Optimising volume at improved grind & recovery +50% 8.5 8.0-8.2 8.0-8.2 8
Slide 30: Underground Reserve Development
UNDERGROUND RESERVE DEVELOPMENT The current underground resources… For personal use only Tropicana Boston Shaker Havana Havana South Havana Deeps UG Exploration Potential Scoping Study (2010) (Drilling Q3, 2017) Prefeasibility (2013) Mineral Resources (100%)* Exploration Potential Open Pit – 5.68 Mo
Slide 31: Boston Shaker
BOSTON SHAKER Recent results below Boston Shaker are very encouraging… 3.0 g/t grade shell For personal use only 0.3 g/t grade shell BWD017 31m @ 4.20 g/t from 340m 14m @ 6.10 g/t from 355m BWD019 17m @ 5.53 g/t from 382m BSD054 9m @ 5.39 g/t from 439 m BSD027A 19m @ 3.98 g/t from 478m BWD040 12m @
Slide 32: Exploration
EXPLORATION There is still potential to identify open pit resources… For personal use only Mineralisation Corridor 30 Km 20 Km 10 Km Angel Eyes TGM Crouching Tiger West Hidden Dragon New targets Beetlejuice Drilling currently Madras New Zebra N …to displace lower grade stockpile mill feed during 202
Slide 33: Long Island Study Status
LONG ISLAND STUDY STATUS For personal use only Key Work Programs Feasibility Status Basis of the Long Island Study will be the Jan 2017 Mineral Resource Estimation which includes all Resource Models Complete drilling completed in CY2016. Pit optimisation studies have been completed for the Long Isla
Slide 34: Competent Persons Statements
COMPETENT PERSONS STATEMENTS The information in this report that relates to Exploration Results is based on information compiled by Mr Damon Elder who is a full-time employee of AngloGold Ashanti Australia Ltd and is a member of The Australasian Institute of Mining and For personal use only Metallur
Slide 35: Appendix 1: JORC 2012 Edition - Table 1
APPENDIX 1: JORC 2012 EDITION -TABLE1 Section 1 Sampling Techniques and Data For personal use only Criteria Commentary Sampling techniques AGA has carried out all the drilling within the Tropicana deposit, with sampling from Reverse Circulation (RC) and diamond drilling predominantly from one metre
Slide 36: Appendix 1: JORC 2012 Edition - Table 1
APPENDIX 1: JORC 2012 EDITION -TABLE1 Section 1 Sampling Techniques and Data Criteria Commentary For personal use only Logging All RC chips and diamond drill cores have been geologically logged for lithology, regolith, mineralisation and alteration utilising AGA’s standard logging code library. RC s
Slide 37: Appendix 1: JORC 2012 Edition - Table 1
APPENDIX 1: JORC 2012 EDITION -TABLE1 Section 1 Sampling Techniques and Data For personal use only Criteria Commentary Sub-sampling techniques The Tropicana laboratory uses a linear automated process to prepare the samples. Samples, from RC and diamond and sample preparation drilling, are loaded ont
Slide 38: Appendix 1: JORC 2012 Edition - Table 1
APPENDIX 1: JORC 2012 EDITION -TABLE1 Section 1 Sampling Techniques and Data Criteria Commentary For personal use only Verification of sampling and On receipt of assay results from the laboratory the results are verified by the Data Manager and by geologists who assaying compare results with geologi
Slide 39: Appendix 1: JORC 2012 Edition - Table 1
APPENDIX 1: JORC 2012 EDITION -TABLE1 Section 2 Reporting of Exploration Results Criteria Commentary For personal use only Mineral tenement and land Tropicana is a joint venture between AngloGold Ashanti Australia Limited (AGAA) and Independence Group NL (IGO) (AGAA:IGO, tenure status 70:30) AGAA is
Slide 40: Appendix 2: Table of Intercepts
APPENDIX 2: TABLE OF INTERCEPTS For personal use only Hole Dip Azimuth Total From To Width Au Gram Hole ID East North RL Drill Date Type (Degree) (Degree) Depth (m) (m) (m) (m) (g/t) Metres BSD027A DDH 652578.96 6763707.622 348.17 -59.59 318.10 6/10/2010 513.6 478 497 19 3.98 75.65 BSD054 DDH 652512